Burnley takeover and PL

[Geordie1974]

How the fùck did they allow this to happen. From start to finish their takeover was a disgrace. The fans as usual will be the ones to suffer.
A small section of the small print in their takeover agreement ;

"The capital element of the loan is due for repayment by Burnley FC Holding Ltd in 2025, with interest only payments being required to this point, providing the club remains in the PL.
In the event of the club being relegated from the PL, the repayment schedule for the capital element of the loan is brought forward with a significant proportion falling due for repayment shortly after the end of the football season in which the relegation event takes place.
This repayment would therefore be expected to fall due within less than one year from the balance sheet date in these circumstances.
In a continuing relegation scenario, a further significant reduction of the loan balance would also take place in the following season. These amounts are subject to agreement between the parties."
Masters and Co allowed this as they were never going to be a threat. With nearly 20 players out of contract this season and now this hanging over them, it could be a while, if at all before we see Burnley in the top flight again.

[Jammy89]

I'd heard it was bad if Burnley went down but **** me that is going to be brutal for them.

[Zippity]

I just hope they don't go under.

The PL are an absolute disgrace but, then, we knew that already.

[Geordie1974]

There's every chance they might. Who in their right mind would give the go ahead to a leveraged takeover that makes the loan repayable sooner on relegation, even staying up the loan would stay the same as only interest was getting paid in the PL. It stinks.

[toptoon]

Shameful. The debt should have been easier to pay if relegated, not more difficult. Money first, football second, as usual.

[Geordie1974]

Shameful. The debt should have been easier to pay if relegated, not more difficult. Money first, football second, as usual.

It's even worse than that mate. If it's how I see it, the club was bought using its own money 90m. Then this loan of 65m was taken for running costs after the takeover. So basically banking on PL status every season. If I'm wrong am happy to be corrected but that's how I read the situation.

[Zippity]

I have a horrible idea you're right, Geordie.

No community deserves to lose their club because some arseholes wanted to make a quick buck.

[Jammy89]

I just don't get how a club can be bought using their own money.

Same as the Man Utd one, just don't get how it's done.

[Ragatino]

Leverages buy outs are comman in business however not in football.

That is until the Glazers set the president buying the swamp men of Salford.

The absolute corruption and rotten back room dealing by Masters, EPL & FA is utterly insulting!

Look at the state of our take over. Running in parallel time line with Burnley's take over but theirs flew through despite not being funded.

If I were Burnley supports trust I'd start legal action against masters, the new owners and everyone and anyone one else.

[Scott Kirkland]

Could you buy a house using the homeowners assets?